Toyota Unions Say Rift With Management Remains on Wages

Employees make a final inspection of Toyota Motor Corp. Lexus ES sedans on the production line of Toyota Motor Kyushu Inc.'s Miyata plant in Miyawaka City, Fukuoka Prefecture. Photographer: Kiyoshi Ota/Bloomberg

March 7 (Bloomberg) -- Toyota Motor Corp., its parts makers
and dealers continue to push back on union proposals to increase
wages for workers in Japan, a top labor official said.

Some management for the companies have said they can’t meet
requests because higher wages would increase costs and that
employment should be prioritized, said Masamoto Azuma, chairman
of the Federation of All Toyota Workers’ Unions, which is
comprised of 312 unions that represent about 329,000 members.

“The management’s thinking is very distant from our
requests, the rift has remained,” Azuma said yesterday in
Toyota City, Japan. “This kind of management is just too
selfish. They only speak from their own standpoint.”

The comments underscore tough negotiations between unions
and companies pressured by Prime Minister Shinzo Abe to raise
wages and bring an end to Japan’s deflation. Abe has urged pay
increases as his economic policies have weakened the yen and
boosted earnings from exports and overseas sales, driving
Toyota’s forecast for a record 1.9 trillion yen ($18.5 billion)
profit this fiscal year.

“Toyota’s decision is a sign for judging whether Prime
Minister Abe’s growth strategy will work or not,” said Takeshi
Miyao, a Tokyo-based auto analyst at Carnorama Japan. “Toyota
has concerns because the domestic market will probably slow down
after the increase in the consumption tax, and uncertainties
remain in a lot of overseas markets.”

Wage Demands

The union representing more than 50,000 workers for the
world’s largest automaker has proposed a net 4,000 yen average
increase in monthly wages and annual bonuses valued at 6.8
months’ salary, or about 2.44 million yen.

The proposal includes an average 7,300 yen increase in pay
that workers receive based on seniority or promotions, which
Toyota has agreed to in previous years.

“I feel they tried to get off with just praising union
members’ contribution or efforts,” Azuma said of management’s
position. “Will the union members trust the companies and work
hard just because they paid the lip service? The members are not
that trusting. Honestly speaking, I even feel angry.”

The compensation being requested is “surprisingly high,”
Senior Managing Officer Naoki Miyazaki told reporters Feb. 19 in
Toyota City, where the company is based. Toyota Motor Workers’
Union head Mitsuyuki Tsuruoka, who represents the main union at
the automaker, on March 4 cited a “big gap” with management
after two rounds of negotiations.

The result of talks between Toyota and its union are
scheduled to be released March 12. Azuma said he hasn’t given up
hope that companies will fully meet their demands.